ABSTRACT
If the costs of insurance are thrown on the tax-payer and if the benefits paid in all industries are the same, differentiation in favour of fluctuating industries, as described in § 9, is present. In a comparison between this system and compulsory insurance with premiums provided by the parties and adjusted to risks, this is a very important matter. But in a comparison between it and compulsory insurance with premiums so provided but not adjusted to risks, it is not relevant, because that system also involves differentiation. It is with this comparison that we are now concerned. We need not inquire in detail how far, under a compulsory system without State aid, the cost of insurance premiums is ultimately borne by others than workpeople,1 because it is obvious that workpeople themselves must bear at least a large part. The assumption of the cost by the State means, therefore, transferring a large part of the burden of supporting those workpeople who happen to become unemployed from the shoulders of other workpeople who do not happen to become unemployed to the general body of taxpayers.
